Garner said 6 to 7 percent is a likely initial return on investment - if the property is mortgaged and occupied by a renter.

MYTH NO. 2: ECONOMIC DOWNTURNS MEAN NEW HOMES COST LESS TO BUILD"With the downtrend in the economy since late 2007, people are under the misconception that labor and material prices have also gone down," said Gary Davis, vice president of a Victoria homebuilding company.

"If you do real estate investment on a small scale, you had better do all the work yourself," Sather said. "If it can break, it will. Everything that breaks is expensive to fix."

Common pitfalls of real estate investing include renters who move out unexpectedly or trash properties, as well as increases in taxes and utility costs, he said.

"Whatever your projections are about value, cash flow, etc., cut it in half," Sather said. "If you can cut all of your projections in half and still make money, then it might be worth doing. I personally hate real estate and would love to get rid of every last bit I own."